KAR Auction Services, Inc. (NYSE:KAR) Q4 2022 Earnings Conference Call February 22, 2023 8:30 AM ET

Company Participants

Mike Eliason - Treasurer & VP IR

Peter Kelly - CEO

Scott Anderson - CFO

Conference Call Participants

John Murphy - Bank of America

Rajat Gupta - JP Morgan

Gary Prestopino - Barrington Research

Peter Lucas - CJS Securities

Operator

Good morning and welcome to the KAR Auction Services Inc. 2022 Year End Earnings Conference Call. All participants will be in a listen-only mode [Operator Instructions].

Please note this event is being recorded.

I would now like to turn the conference over to Mike Eliason, Treasurer and Vice President Investor Relations. Please go ahead.

Mike Eliason

Thanks Kate. Good morning. And thank you for joining us today for the KAR Global fourth quarter 2022 earnings conference call. Today, we will discuss the financial performance of KAR Global for the quarter ended December 31, 2022. After concluding our commentary, we will take questions from participants. Before Peter kicks-off our discussion, I'd like to remind you that this conference call contains forward forward-looking statements within the meaning of the Safe Harbor provisions for the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may affect KAR's business, prospects and results of operations and such risks are fully detailed in our SEC filings.

In providing forward-looking statements, the company expressly disclaims any obligation to update these statements. Let me also mention that throughout this conference call, we will be referencing both GAAP and non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the applicable GAAP financial measures can be found in the press release that we issued yesterday which is also available in the Investor Relations section of our Website.

Now, I'd like to turn this call over to KAR Global's CEO, Peter Kelly. Peter?

Peter Kelly

Thank you, Mike, and good morning, everybody. I'm delighted to be here this morning to provide you with an update on KAR Global. During today's call, I'll provide you additional information and detail relating to the following items; our fourth quarter and full year 2022 performance, our view of the current market factors impacting our industry, our outlook for 2023 and beyond, and a summary of our capital allocation activities.

I'm going to speak about our business in two segments, our marketplace segments which we formally call the ADESA segment and a finance segments which we formerly called the AFC segments. To begin Q4 with our second full quarter as a more asset like digital marketplace company. Against the backdrop of an unusual and still very volume constrained industry environment, we increased revenue and total gross profit on reducing our overall cost structure. We made significant progress to position our company for improved performance in 2023 by simplifying our business and consolidating a number of our platforms and operations. And we positions our company for growth in 2023 and beyond.